Manufacturing sector, which accounts for more than three-fourth of the entire index, continued to growth at 3.1 percent in August, compared with 0.1 percent growth in July, government data showed.
The annual inflation went up in September to 1.8 pct from 1.2 pct in August, according to data of the National Institute of Statistics (INS), sent on Wednesday.
In a boost to the economy, the factory output growth in August surged to 9-month high of 4.2 per cent, indicating an acceleration of industrial activities after the initial setback due to GST-related destocking. Retail inflation stood at 4.31 per cent in September, 2016.
This was higher than the 4 per cent growth recorded in same month last fiscal. Rate of price rise in pulses continued with deflationary trend at (-) 22.51 per cent and eggs prices fell by 0.15 per cent.
The Index of Industrial Production (IIP) had registered a tepid growth of 1.2 per cent in July this year. The consumer price index (CPI) based inflation stood at 4.39 percent during the same month previous year. Similarly, consumer non-durables grew almost 7 percent, which contracted (-) 0.1 percent in July. Inflation not easing further dampens hopes of India Inc for interest rate cuts.
Primary goods' production grew sharply at 7.1 percent in August as compared with 2.3 percent jump last month.
Meanwhile, core inflation at 4.6 percent continues to outpace the headline reading, which might reinforce the central bank's neutral stance.